If a certain stock sells for 33.812 dollars on the NYSE, how much will it sell for, in dollars, on the LSE(London stock exchange). Remember that the distance between NYSE and LSE is about 3,460 miles
If a certain stock sells for 33.812 dollars on the NYSE, how much will it sell for, in dollars, on the LSE(London stock exchange). Remember that the distance between NYSE and LSE is about 3,460 miles
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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If a certain stock sells for 33.812 dollars on the NYSE, how much will it sell for, in dollars, on the LSE(London stock exchange). Remember that the distance between NYSE and LSE is about 3,460 miles
Expert Solution
Step 1
1) If a Stock is listed at more than one stock exchange, then the price traded at all the stock exchanges will be same price excluding brokerage, volatility etc otherwise, arbitrage opportunities will arise
Distance doesn't matter for the stock price to be traded at different stock exchanges
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